Over the next few years, the federal budget deficit is expected to grow, reaching the $1 trillion mark by 2020, according to projections. The national debt has already surpassed $21 trillion and is also expected to skyrocket to $33 trillion by 2028. At that point, the publicly held debt will almost match the size of the country’s economy.
The federal budget deficit projections were announced by the Congressional Budget Office (CBO), a nonpartisan group, and is the first estimate issued since President Donald Trump signed the recent tax cuts into law.
According to a report by the New York Times, the tax cuts are anticipated to cost the federal government approximately $1.9 trillion over the course of 11 years.
Recent legislation that boosted military and domestic spending also play a role in the projections. Lawmakers passed a two-year budget deal that increased caps on military and domestic spending by around $300 billion, paving the way for the $1.3 trillion spending bill to be passed.
By 2028, the debt held by the public will reach 96 percent of the gross domestic product (GDP). The level is higher than any point in history since World War II, and economists believe it could bring about a financial crisis.
At the end of the current fiscal year, which ends on September 30, the budget deficit will reach $804 billion, a significant increase from the $665 billion at the end of the previous fiscal year, based on projects from the CBO.
Within a decade, the deficit is estimated to reach $1.5 trillion.
While Congress hasn’t seemed overly concerned about the mounting deficit as of late, the House is expected on Thursday to vote on a Constitutional amendment that would require a balanced budget.
To pass, the Constitutional amendment would require two-thirds of both the House and Senate to agree. It is considered unlikely that the legislation will pass.